Introduction
Germany stands out as Europe’s strongest economy and a key destination for international expansion. With a population of over 80 million, direct access to the EU single market, and a reputation for innovation and stability, it offers a unique environment for business growth.
The country is a global leader in sectors such as automotive, engineering, renewable energy, and technology, supported by excellent infrastructure and a highly skilled, multilingual workforce. Coupled with government incentives and strong R&D funding, Germany provides both immediate opportunities and long-term strategic advantages for companies ready to expand.
EOR & PEO Solutions in Germany
If you’re looking to hire employees in Germany without setting up a legal entity, using an Employer of Record (EOR) like Empleyo is the simplest and most compliant path forward. An EOR in Germany acts as the official legal employer on your behalf, managing everything from payroll and HR administration to employment contracts and statutory employee benefits.
This model allows you to expand into Germany quickly, while remaining fully compliant with local labor laws — without the complexity or cost of registering a local entity.
What Is an Employer of Record in Germany?
An Employer of Record Germany (also known as an EOR provider) enables businesses to hire and onboard Germany employees without having to incorporate in-country. The EOR manages:
- Employment contracts in Germany
- Monthly payroll and tax filings
- Statutory benefits in Germany (like social insurance and leave)
- Ongoing HR and compliance responsibilities
What’s the Difference Between EOR and PEO?
A Professional Employer Organization (PEO) typically supports businesses that already have a registered entity in Germany, offering co-employment solutions for HR, payroll, and benefits. An EOR, however, is ideal when you don’t have a legal presence in Vietnam but still want to hire full-time staff.
Whether you choose an EOR or PEO depends on your Germany hiring strategy, budget, and long-term plans for the market.
Benefits of Using an EOR Service in Germany
- Hire employees in Germany faster, with no setup delays
- Stay compliant with German labor and tax laws
- Avoid the cost of forming and maintaining a local entity
- Access local expertise in employment law and payroll in Germany
- Simplify HR management while maintaining control over your team
By using an EOR solution, companies can confidently build their team in Germany, access top talent in Germany, and stay focused on business growth without getting tangled in bureaucracy.
Hiring in Germany
Germany is a thriving market with a growing pool of skilled professionals, making it an ideal destination for businesses looking to expand globally. But to hire in Germany successfully, it’s important to understand your options especially when you don’t have a legal entity in Germany.
That’s where using an Employer of Record in Germany makes all the difference.
Your Hiring Options in Germany
Businesses have two main paths to hire employees in Germany:
- Register a local entity, manage payroll and HR directly, and take on full legal responsibility.
- Use an Employer of Record (EOR), a third-party EOR provider that acts as the legal employer in Germany on your behalf.
The second option is faster, lower-risk, and ideal for companies that want to test the German market, launch quickly, or hire remote employees without permanent infrastructure.
Why Use an EOR to Hire in Germany?
- Drafting and executing employment contracts in Germany
- Managing Germany payroll and mandatory contributions
- Handling employee benefits as required under German labor law
Employment in Germany
Understanding how employment in Germany works is key to managing your team successfully and staying compliant. Whether you’re hiring directly or using an Employer of Record (EOR), companies must follow German labor laws closely especially when it comes to employment contracts, payroll, and employee benefits.
That’s why many growing businesses choose to use an EOR in Germany to handle these responsibilities with confidence.
Employment Contracts in Germany
All employees in Germany must be hired under a written employment contract, clearly outlining the job role, salary, benefits, working hours, and duration of employment. Contracts must comply with the Labor Code of Germany, and are usually signed before or on the first day of work.
By working with a Germany employer of record, you can ensure that all employment contracts in Germany are properly structured, compliant, and aligned with local requirements without having to hire a full in-house HR team.
Payroll & Employer Contributions
Payroll in Germany involves more than just paying a monthly salary. Employers are required to withhold income tax and make contributions to:
- Pension insurance
- Health insurance (Krankenversicherung)
- Unemployment insurance (Arbeitslosenversicherung)
These deductions and employer contributions are calculated based on the employee’s gross monthly salary, and must be submitted on time to remain compliant. An EOR in Germany handles this for you, managing all payroll, tax filings, and reporting on your behalf.
Employee Benefits and Leave
German labor law mandates several employee benefits, including:
- Annual vacation
- Sick leave
- Maternity leave
- Public holidays
- Parental leave & allowance
Using an employer of record service ensures your team in Germany receives all required benefits and that your business remains fully compliant with German employment law.
Termination & Notice Periods
Ending an employment contract in Germany requires careful compliance with strict labor laws that protect both employees and employers. Notice periods are tied to the employee’s length of service, starting at four weeks to the 15th or end of a month, and extending up to seven months for long-tenured staff.
Terminations must follow fair procedures, and dismissals generally need a valid reason such as business, conduct, or performance-related grounds. Employers of Record (EOR) in Germany ensure these requirements are managed correctly, handling documentation, timelines, and compliance to reduce legal risk while maintaining a professional and fair process.
Visas & Permits in Germany
If you’re planning to hire employees in Germany or bring in foreign talent, understanding Germany’s visa and permit requirements is critical. Navigating these processes can be complex, but working with a trusted Employer of Record (EOR) in Germany makes it much easier.
An experienced EOR provider will ensure all permits are handled legally, so you can focus on building your team in Germany with confidence.
Work Permits for Foreign Employees in Germany
Foreign nationals who plan to work in Germany must obtain the appropriate work and residence permits, which are closely tied to their role, qualifications, and country of origin. The process can be complex ranging from EU Blue Cards for highly skilled professionals to specialized permits for other categories of workers.
An Employer of Record (EOR) streamlines this journey by guiding both employer and employee through the application process, ensuring compliance with immigration laws, and managing the administrative requirements. This allows businesses to onboard international talent quickly and confidently while minimizing legal and procedural risks.
Types of Visas for Foreign Talent
There are several types of visas used to work or do business in Germany, including:
- EU Blue Cards
- Opportunity Cards (Chance Cards)
- Job Seeker Visas
- Self-Employment / Freelance Visas (Type D)
- Working Holiday Visas
Each visa type has specific use cases, duration limits, and documentation requirements. If you’re looking to hire in Germany or send international staff temporarily, an EOR Germany solution helps you identify the right visa and manage the application process end-to-end.
Business Permits for Foreign Companies
To operate directly in Germany, foreign companies typically need to register a legal entity in Germany and apply for a business license. This can be a time-consuming process that includes office registration, investment approvals, and compliance with German labor laws.
Alternatively, you can use an EOR in Germany to bypass the need for a local entity. The Germany employer of record is already registered and authorized to employ staff and manage payroll, contracts, and local compliance making it easier and faster to hire employees in Germany.
Why Visas & Permits Matter for Global Hiring
If you’re hiring foreign employees in Germany, or placing international staff in-country, it’s essential to stay compliant with immigration laws. The right employer of record service helps you:
- Avoid visa delays or permit denials
- Ensure alignment with German employment law
- Quickly hire and onboard top talent without risk
- Operate legally, even without a registered entity in Germany
Common Questions on EOR in Germany
With an EOR, hiring can be completed in just a few days to a few weeks, compared to months if you were to establish your own legal entity. The EOR already has a compliant infrastructure in place, so onboarding is fast, seamless, and fully compliant with German labor law.
The EOR is the official legal employer of record in Germany, handling contracts, payroll, and compliance, but the employee works day-to-day under your direction. This setup ensures your company has operational control without the legal burden of establishing a local entity.
In Germany, probation periods typically last up to six months, during which notice periods are shorter (usually two weeks). An EOR ensures probation terms are correctly documented and legally compliant in the employment contract.
EORs employ in-country experts who stay up to date with Germany’s complex employment, tax, and social security regulations. They take on the legal responsibility for compliance, ensuring contracts, payroll, and benefits all meet statutory requirements.
Technology, engineering, renewable energy, and professional services firms frequently use EORs in Germany because they often need to hire quickly, test new markets, or onboard international talent without establishing a local subsidiary.
